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CalAmp Acquires Skybility; Purchase of Embedded Cellular Transceiver Provider Strengthens CalAmp's Position in Telemetry and Asset Tracking Markets


OXNARD, Calif.--(BUSINESS WIRE)--April 18, 2005---CalAmp Corp. (NASDAQ:CAMP), a leading provider of wireless products and solutions, today announced that it has acquired the business and certain assets of Skybility, a privately held developer and supplier of embedded cellular transceivers. The acquisition strengthens CalAmp's position in the telemetry and remote asset tracking markets, while providing the Company with a suite of advanced products designed to work on multiple cellular network platforms.

Located in Carlsbad, California, Skybility offers embedded cellular transceivers that operate on the GSM and AMPS cellular networks utilizing both voice and Control Channel technology. Skybility is currently developing a multi-mode GSM/AMPS transceiver that will combine the broad coverage of the analog-based AMPS network with the cost and bandwidth advantages as well as the global footprint offered by the GSM standard. Skybility's cellular transceivers are optimized for sending and receiving of data in Machine-to-Machine (M2M) applications.

Skybility's cellular transceivers provide the enabling technology for a wide variety of M2M wireless communications applications including: asset tracking, advanced vehicle location and control, back-up for security communications, remote equipment monitoring, and wireless Supervisory Control and Data Acquisition (SCADA) for industrial control. Skybility's customers include companies that are leaders in these M2M vertical markets, including DEWALT, Aircept by AirIQ, InterTrak and SupplyNet.

"This acquisition extends the scope of solutions that CalAmp can provide in the area of cellular-based M2M applications, while leveraging our strengths in RF technologies and our integration and manufacturing expertise," said Fred Sturm, CEO of CalAmp Corp. "Skybility brings us a portfolio of proven products, excellent customer relationships, and intellectual property that enables customers to position themselves for emerging digital network standards, while reducing the size, cost and complexity of cellular modules."

"We are very pleased to have found the right partner to move Skybility's products and technology to the next level of success," said Gallin Chen, CEO of Skybility. "CalAmp provides the depth of engineering talent and manufacturing capabilities required to effectively leverage and grow our leadership position in M2M communications. We will be able to extend the scope of solutions to customers in key vertical markets that we serve. In addition, it provides the resources to drive adoption of our new, unique multi-mode platform currently under development."

Skybility had revenues of approximately $9 million during calendar 2004. Under the terms of the agreement, CalAmp purchased the assets and business of Skybility for an initial cash payment of $4.9 million, and a future earn-out payment estimated to be in the range of $2 million to $4 million depending on the achievement of specified financial targets in the 12-month period beginning on the acquisition date. No liabilities were assumed in the acquisition. The Skybility business, which has 17 employees, will become part of CalAmp's Products Division.

About CalAmp Corp.

CalAmp is a provider of wireless products and engineering services that enable anytime/anywhere access to critical information, data and entertainment content. With comprehensive capabilities ranging from product inception through volume production, CalAmp delivers cost-effective high quality solutions to a broad array of customers and markets. CalAmp is the leading supplier of direct broadcast satellite (DBS) outdoor customer premise equipment to the U.S. satellite television market. The Company also provides wireless connectivity solutions for the healthcare industry, public safety organizations, telemetry and asset tracking markets, enterprise-class 802.11 networks, and digital multimedia delivery applications. The Company is headquartered in Oxnard, California and has approximately 625 employees. Founded in 1981, CalAmp has been publicly traded since 1983 as NASDAQ: CAMP.

Forward Looking Statement

Statements in this press release that are not historical in nature are forward-looking statements, which involve known and unknown risks and uncertainties. Words such as "may," "will," "expects," "intends," "plans," "believes," "seeks," "could," "estimate" and variations of these words and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors, including general and industry economic conditions, competition, development factors, operating costs, and other risks and uncertainties that are detailed from time to time in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: CalAmp Corp.
Rick Vitelle, 805-987-9000
CCG Investor Relations
Crocker Coulson, 818-789-0100

SOURCE: CalAmp Corp.

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